LaTeX tabular is based on \halign TeX primitive. The features of \halign cannot be described in short answer fully, so excuse me a simplification.
\halign has the following syntax (roughly speaking):
\halign{<columns declaration>\cr
item & item & item \cr
item & item & item \cr}
The <columns declaration> can be done using TeX primitives like \hfil, \kern etc. and LaTeX macros converts the user declarations like "lrc" to somewhat more complicated but more general <columns declaration> understandable by \halign. Moreover, LaTeX says \let\\=\cr inside tabular environment, so LaTeX user typically does not know nothing about \cr primitive which works as row separator in \halign. He/she uses \\ instead \cr.
The \halign primitive works in the two steps. First, it saves the contents of all items to individual boxes. Then it calculates the maximal natural width of such boxes in each column (say w1, w2, ..., wn). In second step, \halign puts lines in vertical mode (one above second), each line includes boxes with items re-boxed to the calculated widths w1, w2, w3, etc. Each line generated from \halign in second step looks like:
\hbox{\hbox to w1{<left declaration1> item1 <right declaration1>}%
\hbox to w2{<left declaration2> item2 <right declaration2>}%
...%
\hbox to wn{<left declaration-n> item-n <right declaration-n>}}
Because each line use the same dimensions w1, w2, ..., wn (pre-computed in the first step), the columns are aligned.
So, you are right: the content of the table items are stored and re-used, but this is done in internal algorithm of \halign primitive. Macro programmer needs not to save boxes manually (for example using \setbox).
tex/latex/base/latex.ltx? – cfr Dec 07 '17 at 02:25texdoc source2ewhich will bring up the documented source. Also, The TeX Book, or TeX by Topic to understand the underlying TeX implementation. – Alan Munn Dec 07 '17 at 02:26